Australian Bond Exchange Reports $3.6B Quarterly Volume, $1.3M Cash Flow Shortfall

• Q3 FY25 trading volume exceeds $3.6 billion
• Strategic agreement signed with ViewTrade Australia for global OTC securities distribution
• Net operating cash flow shortfall of $1.3 million due to timing of expenses
• Secured $1.8 million via cash advance facility to bolster near-term liquidity
• Outstanding convertible notes commitments of $1.5 million remain unissued

Strong Trading Volume Highlights Market Engagement

Australian Bond Exchange Holdings Limited (ASX: ABE) has reported a robust trading volume exceeding $3.6 billion for the quarter ended 31 March 2025 (Q3 FY25). This performance underscores the company's growing footprint in the over-the-counter (OTC) bond market, catering to private investors, funds, and financial institutions. Despite the traditional seasonal slowdown during the Australian summer vacation period, ABE's private client trading and brokerage activities maintained steady revenue contributions.

Strategic Partnership with ViewTrade Australia

ABE announced a significant agreement with ViewTrade Australia, a subsidiary of the US-based ViewTrade Group, which operates brokerage, technology, and financial solutions across more than 30 countries. ViewTrade services over 300 financial organizations globally, including banks, broker-dealers, and wealth managers. The partnership aims to integrate ABE’s OTC securities offerings into ViewTrade’s extensive distribution network, potentially unlocking access to a global trade flow valued at approximately USD $500 billion annually. While integration is ongoing, the collaboration is expected to commence revenue production in the near term, positioning ABE for accelerated international growth.

Financial Position and Cash Flow Dynamics

ABE reported a net operating cash flow shortfall of $1.3 million for Q3 FY25, a widening from the $0.7 million shortfall in the previous quarter. The increase primarily reflects timing differences in payments related to corporate advisory fees, audit and accounting services, and office rentals. Despite this, the company continues to pursue revenue growth through diversified sales channels and client acquisition, acknowledging that income from business development often lags behind initial engagement and integration efforts.

Funding and Liquidity Measures

To support its operational and strategic objectives, ABE secured $1.2 million in temporary funding during the quarter through a fully drawn cash advance facility, with an additional $0.6 million drawn in April 2025, bringing total drawn funds to $1.8 million. This facility, repayable within three years, provides immediate liquidity to navigate near-term expenses and invest in growth initiatives. Meanwhile, the company has outstanding commitments to issue unsecured convertible notes totaling $1.5 million, though no new notes were issued during the quarter.

Outlook and Strategic Focus

ABE remains committed to its vision of democratizing access to fixed income markets through proprietary technology and transparent trading platforms. The company is actively leveraging its partnership with ViewTrade to expand its client base and enhance revenue streams. Cost management efforts have streamlined operations, and the company anticipates that the integration with ViewTrade will contribute positively to margins and sales pipelines. With available funding and a clear strategic roadmap, ABE aims to stabilize its cash flow and capitalize on emerging market opportunities.

Bottom Line?

ABE’s strategic moves and funding boost set the stage for scaling global OTC bond market access, but execution risks remain.

Questions in the middle?

• When will revenue from the ViewTrade integration begin to materially impact ABE’s financials?
• What is the timeline and market appetite for the outstanding $1.5 million convertible notes issuance?
• How will ABE manage cash flow shortfalls if business development income continues to lag?